We describe an activity as a value-added activity if its elimination by a manager would reduce the perceived value or utility (usefulness)that customers experience from using the relevant output.

Question

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Value-added activities add value to the final product or service and are therefore essential to maintaining customer satisfaction. If a manager were to eliminate a value-added activity, it would ultimately hurt the customer experience and reduce perceived value or usefulness.

We Describe an Activity as a Value-Added Activity If Its